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Unformatted text preview: moting general
nterest
economic well-being.
economic 2.2 DEMAND
2.2 Demand quantity demanded People have almost unlimited wants but limited resources. Wants become demands when backed by purchasing power.
the amount of a good that buyers are willing and able to purchase law of demand Ceteris paribus (other things equal), the quantity demanded of a good falls when the price of the good rises
demand vs price ­ negatively related 2.2.1 DEMAND SCHEDULE AND CURVE
2.2.1 Demand Schedule a table that shows the relationship between the price of a good and the quantity demanded Demand Curve a graph of the relationship between the price of a good and the quantity demanded The demand schedule shows the quantity demanded at each price. the
The
demand curve, which graphs the demand schedule, shows how the
The demand schedule
The
quantity demanded of the good changes as its price varies. Because a
lower price increases the quantity demanded, the demand curve slopes
downward.
downward.
Price of $3. 50
Ice­cream Cone 1. A decrease in price… $3. 00...
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